Top 5-year fixed deposit rates in July: Suryoday SFB offers 8%, SBM Bank leads among private lenders

Fixed deposits (FDs) remain one of the most popular investment avenues for risk-averse investors, thanks to their guaranteed returns and capital protection. Among various tenures, the five-year fixed deposit is particularly attractive for long-term financial planning, offering relatively higher interest rates along with predictable earnings.

In July 2026, Small Finance Banks (SFBs) continue to dominate the interest rate charts, while several private sector banks are also offering attractive returns for both general and senior citizens.

According to the latest rates, Suryoday Small Finance Bank is offering the highest interest rate of 8.00% per annum on five-year fixed deposits for both general and senior citizens. Among scheduled commercial banks, SBM Bank leads the category with 7.00% per annum for general citizens and 7.50% per annum for senior citizens.

Top 5-year FD rates among banks

Private sector banks continue to offer better rates than most public sector lenders. YES Bank offers 6.75% to general customers and 7.50% to senior citizens, while RBL Bank provides 6.70% and 7.20%, respectively. Axis Bank offers 6.60% for general citizens and 7.20% for senior citizens.

Among large private banks, HDFC Bank is offering 6.15% for general citizens and 6.65% for senior citizens. ICICI Bank offers 6.50% and 7.00%, respectively.

Public sector banks remain relatively conservative with their offerings. State Bank of India (SBI) provides 6.05% for general citizens and 7.05% for senior citizens, while Punjab National Bank, Bank of Baroda and Indian Bank offer 6.00% for general customers on five-year deposits.

Small Finance Banks offer higher returns

Small Finance Banks continue to outperform larger peers on deposit rates as they seek to attract retail deposits.

Apart from Suryoday Small Finance Bank's market-leading 8% rate, Equitas Small Finance Bank offers 7.00% for general citizens and 7.50% for senior citizens. AU Small Finance Bank offers 6.75% and 7.25%, while Jana Small Finance Bank and Ujjivan Small Finance Bank provide 6.50% for general customers and 7.00% for senior citizens.

Financial planners, however, advise investors to evaluate not only the interest rate but also factors such as the bank's financial strength, deposit insurance coverage, liquidity needs and premature withdrawal penalties before investing.

Deposits of up to ₹5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), offering an additional layer of safety.

Investors should also note that interest earned on fixed deposits is taxable according to their applicable income tax slab. Those seeking to optimise post-tax returns should compare effective yields rather than relying solely on headline interest rates.

With interest rates remaining relatively attractive, five-year fixed deposits continue to appeal to retirees, conservative investors and individuals looking to diversify their portfolios with low-risk investment options. 

Top 5-Year FD Rates (General Citizens) 

Bank	Interest Rate (p.a.)
Suryoday Small Finance Bank	8.00%
Equitas Small Finance Bank	7.00%
SBM Bank	7.00%
YES Bank	6.75%
AU Small Finance Bank	6.75%
RBL Bank	6.70%
IndusInd Bank	6.65%
Axis Bank	6.60%
Jammu & Kashmir Bank	6.60%
Tamilnad Mercantile Bank	6.60%

Top 5-Year FD Rates (Senior Citizens)

Bank	Interest Rate (p.a.)
Suryoday Small Finance Bank	8.00%
SBM Bank	7.50%
YES Bank	7.50%
Equitas Small Finance Bank	7.50%
AU Small Finance Bank	7.25%
Axis Bank	7.20%
RBL Bank	7.20%
IndusInd Bank	7.15%
Jammu & Kashmir Bank	7.10%
Dhanlaxmi Bank	7.10%